Intel Q4 profits down 90%
Intel hit by downturn in PC markets, processor and chipset sales down
Intel has reported fourth quarter profits down 90% and revenue down 23% from Q4 2007, due the downturn in PC markets.
The company posted net income of $234 million from revenue of $8.2 Billion, with microprocessor and chipset sales significantly lower versus the previous quarter.
Revenue from Intel’s Atom processors and chipsets was up 50% to $300 million, although the lower cost of the processor meant that they did not have significant impact on the company’s bottom line.
Intel also made a $1 billion net loss from its equity investment in WiMAX wireless broadband provider Clearwire.
Intel president and CEO Paul Otellini said: “The economy and the industry are in the process of resetting to a new baseline from which growth will resume. While the environment is uncertain, our fundamental business strategies are more focused than ever.
“Intel will continue to extend its manufacturing leadership, drive product innovation, develop new markets and implement operating efficiencies that have already taken more than $3 billion out of our ongoing cost structure since 2006. Intel has weathered difficult times in the past, and we know what needs to be done to drive our success moving forward. Our new technologies and new products will help us ignite market growth and thrive when the economy recovers,” he added.
Owing to the uncertainty of the economic situation, Intel has refused to make a revenue prediction for the first quarter of 2009, although the company said that it was planning on revenue of around $7 billion.